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Moody¡¯s Investors Service has lowered the bank financial strength rating outlook for Korea¡¯s four key banks -- Kookmin Bank, Woori Bank, Shinhan Bank and Hana Bank -- from ¡°stable¡± to ¡°negative.¡±
Moody¡¯s said the downgrade reflects that the financing of those banks is increasingly difficult and financing cost is soaring in the global capital market, with negative effects on profitability.
The measure does not downgrade the credit rating itself but merely indicates it could be lowered if the current situation continues. Nonetheless, it is fueling concern that domestic banks will face a worsening crunch.
However, the stock price of the four banks remained unchanged Wednesday as global financial markets including Korea regained calm in the hope that a bailout package will pass in the U.S.
The Korean currency rose W20 from the day before to W1,187, returning to under W1,200 and the first increase in value against the greenback since Aug. 19. The benchmark KOSPI index closed at 1,439.67 points, down 8.39 point or 0.58 percent from the previous day. Analysts believe that minimal slide despite the record plunge in the U.S. stock market the day before indicates that it underwent only slight extra corrections.
The Tokyo stock exchange rallied 0.96 percent from a 4.12 percent drop on the previous day and the Taiwan stock exchange was up 0.78 percent after a 3.54 percent drop.
Earlier, the Dow Jones Industrial average ended at 10,850.66 points, 4.68 percent (485.21 points) up from the previous day, marking the six-year-record rise since Oct. 15 in 2002.
(englishnews@chosun.com )
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